
February 4, 2025
How to Sell My Dental Practice: A Comprehensive Guide
Selling your dental practice is a major decision that requires careful planning, preparation, and strategy. Whether you’re transitioning to retirement, pursuing other career opportunities or seeking a lifestyle change, this guide provides everything you need to know about selling your dental practice successfully.
What To Do When Selling a Practice
The process of selling your dental practice begins with understanding your goals and creating a clear roadmap. Here’s what you need to do:
Plan Your Exit Strategy:
- Decide when you want to sell and what you’d like to achieve from the sale
- Identify personal and financial goals to guide your decision
Assemble a Team of Professionals:
- Work with a dental practice broker, attorney and accountant – all of whom specialize in dental transitions
- This team will help with valuation, legal compliance and negotiations
Conduct a Practice Valuation:
- Obtain an accurate valuation to determine your practice’s fair market value
- Factors influencing valuation include type of dentistry, revenue, profit margins, location and patient base
Ways To Increase Practice Value ASAP
Maximizing the value of your dental practice can lead to better offers. Consider these steps:
- Upgrade Equipment: Modern technology can enhance your practice’s appeal to buyers
- Streamline Operations: Reduce inefficiencies and ensure your systems are well-documented
- Boost Online Presence: Positive online reviews and a strong website can attract more interest
- Secure Your Patient Base: Demonstrate consistent patient retention and growth
Determine the Type of Dental Practice Transition You Want
There are several transition options to consider:
- Individual Dentists: Often associates or local dentists are interested in purchasing a practice to establish or expand their own
- Partner with a Dental Support Organization (DSOs): DSOs provide administrative support and resources while allowing dentists to focus on patient care. Selling to a DSO can offer financial stability and access to growth opportunities
- Partner with Private Equity Group: For larger practices with high revenue and a robust footprint, private equity groups may see your business as a strategic investment
Each option comes with unique benefits and challenges, so choose one that aligns with your goals.
Market the Sale and Identify a Buyer
Seasoned dental practice brokers will handle all the marketing. While less experienced brokers will often post the opportunity online and then wait for the phone to ring, industry leading brokers will implement proactive marketing strategies that help expand the reach of your practice and form a competitive marketplace for your practice to leverage up offers.
What’s more, discretion is essential when selling your practice. Expert dental practice brokers will ensure that they’ll incorporate the right amount of information within listing to be appealing to buyers without them being able to decipher which practice is marketing. NDAs are also an important component of maintaining discretion throughout the transaction process.
Final Negotiations and Asset Purchase Agreement
Negotiating the sale involves:
- Evaluating Offers: Work with your broker to carefully review and consider price, deal structure, payment term and non-financial aspects like patient care and future opportunities for your existing employees
- Drafting an Asset Purchase Agreement: Work with your attorney and broker to outline all terms of the sale and a stock purchase agreement, when applicable, to outline the terms and conditions for buying and selling equity within the practice and/or holding company
- Addressing Transition Periods: Agree on a timeline for handing over responsibilities
Closing Tasks Before the Closing Date
Before finalizing the sale, complete these tasks:
- Transfer legal documents, including lease agreements and licenses
- Ensure a seamless handover of patient records in compliance with HIPAA regulations
Transitioning After the Sale
Post-sale transitions are crucial for maintaining the practice’s success:
- Notify staff and patients about the transition; we recommend doing this after the paperwork has been signed to help ensure a smoother transition
- Offer support during the transition period to help the new owner adjust
- Communicate with patients to ensure they feel confident in the new leadership
Bottom Line
Selling your dental practice doesn’t have to be overwhelming. By following these steps and working with experienced professionals, you can achieve a smooth and successful transition while securing the best possible outcome for your future.
If you’re curious about taking your practice to market, contact the pros at Professional Transition Strategies today.